How To

How to Get Approved for a Loan

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By tocuriousgeorge
User-Submitted Article
(7 Ratings)
Loan Home Equity
Loan Home Equity

From time to time many people find it necessary to get approved for a loan to make some kind of purchase. It may be a small purchase that requires a personal loan, or it may be a large purchase such as a house or car and require a large loan like a a mortgage. Getting approved for a loan can be a daunting task. This article will give you the steps and resources it takes to get approved for a loan.

Difficulty: Moderate
Instructions

Things You'll Need:

  • computer
  • internet access
  • credit reports from all three credit bureaus
  1. Step 1
    Rate Loan
    Rate Loan

    Types of Loans
    There are three major types of loans. They are:
    1. Secured Loans
    2. Unsecured Loans
    3. Demand Loans

  2. Step 2
    Loan Secure
    Loan Secure

    Secured Loans
    A secured loan is a loan that uses collateral to back up the promise to repay the loan. A housing mortgage is a type of secured loan.

  3. Step 3
    Unsecured Credit Loans
    Unsecured Credit Loans

    Unsecured Loans
    An unsecured credit loan is a loan that does not require collateral to be used in order to get a loan approval. Several types of unsecured loans are:
    Credit Cards, personal loans, and lines of credit(Furniture and Appliance loans).

  4. Step 4
    Approval Loan
    Approval Loan

    Demand Loan
    A demand loan can be a secured credit loan or a unsecured credit loan. They typically have floating interest rates and no fixed date for repayment.

  5. Step 5
    Credit Report Free
    Credit Report Free

    Know Your Credit Score
    Before you apply for a loan, you really need to know what is on your credit score and what activity is showing up on your credit report. You can order a FREE credit report from each of the three major credit bureaus by going to www.annualcreditreport.com. I have put a link in the resource section below. Make sure you get a copy of your credit report from Equifax, Transunion, and Experian. Do not just order your credit report from one of the credit bureaus because credit reporting is not uniform across the board. Some items may show up on one report and not the other and you will need a complete and accurate of your credit history before you apply for a loan.

  6. Step 6
    Credit Report Annual
    Credit Report Annual

    Clean up Your Credit Report
    If you find any judgments,unpaid debt, or incorrect information on your credit report you should take immediate action and clean your credit report up before you apply for a loan. I have listed several resources in the resource section below if you need information about fixing your credit yourself or removing a judgment from your credit report. You should dispute any inaccurate credit history information. Take your time and look over your credit report with a fine tooth comb. I have had six or seven inaccuracies removed from my report alone and several others removed from my husbands credit report. Disputing inaccurate information will help you tremendously in your efforts to clean up your credit history. Please use the links below for more information.

Comments  

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on 6/17/2009 Yup thats how you get that loan. Good advice on real estate matters. 5 stars.

Barry331 said

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on 4/18/2009 Very useful Info on how to get a loan-5*

goodselfme said

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on 3/29/2009 Well done article on loans. Thank you.

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on 3/2/2009 Great article on getting approved for a loan! 5*

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on 3/1/2009 Thanks for the good advice! We'll be looking for a house in the next year! 5*

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